GFE, you probably have a much better camera to use by now, but I'll leave this here anyway in case someone else has this problem
First off, the first photo with the flash is truly lovely. I see the dilemma, though. . . In my opinion the flash shows much more detail and clarity, but makes her look more harsh because you lose any shadows. I'm a nightowl, and I face the same problem with my photographs. Granted, I mostly do still life and portraits of real people (not a doll owner yet), and usually shoot analog point-and-shoots. Anyway, I have a deep hatred for using bright flashes because they take away shadows and make colors look unnatural. What worked for me was to head to the local thrift store and pick up a few floor lamps- ones with adjustable necks work best. I bought some fluorescent bulbs for them, and plugged them all into a power strip. This allowed me to play with each light source and aim it at my subject from whichever direction I wanted until I reached the level of shadow and light that I liked. If you're short on space, I'm sure desk lamps would work well too. Basically, it's a cheap, easy, and impermanent version of the mini-studio Dollarhyde's friend has, with the added benefit of being easier to use in combination with a cheaper camera. As much as I would love to set up such a studio, I can't justify spending the money when I can get an adequate result (for my needs) from my ghetto version ;D I've taken many beautiful photographs this way, and found my only issue to be that real people hate the amount of light I aim at their eyes. Luckily, you won't have this problem
If you intend to purchase an SLR, I recommend going all the way and getting photographic spotlights, because the floor lamp approach will only weigh you down at that point.
Happy shooting!